Back in December, Brazilian media had reported that Liverpool owners Fenway Sports Group were seeking to acquire the top tier club Cruzeiro.
Cruzeiro, one of Brazil's most storied teams, had been seeking outside investment in a bid to ease its financial issues exacerbated by the pandemic, with the club becoming the first Brazilian side to make the switch from a non-profit entity to a corporate one in a bid to restructure its finances, forming a ‘Sociedade Anônima’ (SA) to attract investors, something that had forbidden under the previous model.
That deal meant that 90 per cent of the shares of the controlling SA were available to sell. But it wasn't FSG who made the move, it was Brazil and Barcelona legend Ronaldo who would front a bid to take control of Cruzeiro.
Some weeks later, Botafogo became the latest Brazilian club to be linked with FSG. It wasn't the Liverpool owners who would seek control there, either, it was Crystal Palace's American shareholder John Textor, who has major plans for the club moving forward.
Europe is the dominant region when it comes to football at club level. It is where the biggest teams, best players and most lucrative club competitions reside. But at a time when investors are seeking to expand their empires in sport, with FSG among that group, there are opportunities in football outside of the European game that could provide enormous opportunities for growth.
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FSG are understood to still be keen on South America, particularly Brazil.
And while 2022's main focus for John Henry is likely to be acquiring an NBA team to add to the Reds, the Boston Red Sox, RFK Racing and the Pittsburgh Penguins NHL team that they bought last year, football isn't totally off the agenda.
But why Brazil?
Brazilian football's top tier, the Campeonato Brasileiro Serie A, is one of the few remaining leagues globally that is under the control of the national football federation, with the Brazilian Football Confederation (CBF) sitting at the top.
Many of the clubs are agitating for change on that front and want to create a new entity to take over the running of the league and be able to better determine their commercial deals and revenue sharing, as well as seeking outside investment to provide a platform for the growth of the Brazilian domestic game.
Brazil's success at national level across many decades has seen the country become synonymous with skill and triumph at the beautiful game. But at domestic level it has been able to truly project itself upon the wider footballing world and tap into the ever growing revenue streams that exist.
For investors, a continent that eats, sleeps and breathes football, creates some of the world's best players and attracts huge crowds, having its own major competitions such as the Copa Libertadores, is enticing. And with Brazilian football now opening itself up to investment at club level and, potentially, at league level, it is a market that is set to experience accelerated growth in the coming years.
According to Brazilian media outlet Globo, around £587m worth of investment has been offered for the changing of the guard when it came to the top table, currently occupied by the CBF.
The deal would be similar to that La Liga clinched with CVC Capital Partners last year, where €2bn in investment was attracted for a stake in the La Liga organisation. A total of 37 clubs from 42 clubs across the top two Spanish leagues voted in favour of the deal in the face of growing financial pressure created by the pandemic. Real Madrid, Barcelona and Athletic Bilbao were vehemently against it, as were the Spanish FA.
But with La Liga needing investment in order to prevent decline, the decision was seen as the best way of achieving that for member clubs.
New media rights deals worth more in value, the ability to keep some of South America's top talent within their ranks and get around the Premier League's stricter rules on the signing of foreign players, and the growth in commercial partnerships set to arrive on the back of new investment are all things that would tick the boxes for Liverpool owners FSG.
The Reds already have a strong connection with Brazil through the likes of Alisson Becker, Fabinho and Roberto Firmino, while young goalkeeper Marcelo Pitaluga arrived from the country last year, and Brazilian goalkeeping legend Claudio Taffarel joined the coaching staff.
Speaking to the New York Times last year, Flamengo president Rodolfo Landin said: "What happens is, the best soccer players play here until they are 18 or 19 and then after they are 32 when they are getting close to retirement. This is really bad, and that’s what really makes me think we need to do something better."
Another plus for FSG would be the value of the clubs.
In Europe's major leagues the costs can be prohibitive, and with rules around dual ownership of clubs potentially causing headaches when it comes to proving separation, such as in the case of the Red Bull owned RB Leipzig and Red Bull Salzburg that are now both Champions League regulars, a South American move has its appeal.
There will be a lot of money, much of it from the US, heading into Brazilian football should the change of organisational structure come to pass in the Campeonato Brasileiro.
With FSG's track record, and the track record of FSG partners such as RedBird Capital in investing in football and sport and seeing the potential for growth value, it will be something likely forming a part of an ever-growing list of potential next moves for a business that is targeting major growth.
